Discuss the circumstances under which Satyams fra Essays

Discuss the circumstances under which Satyam's fra Essays Discuss the circumstances under which Satyam's fraud was exposed. 1, the failure of the acquisition of Maytas Infra and Maytas Properties which are promoted by two sons of satyam's chairman, Ramalinga Raju.These two companies are considered as business companies where they held more than 35%portion stake (significant realted party transcation involved in the acquisition) 2,the investors strongly against this acquisition , share price fell off by 30% Media and investors started raising doubts over the corporate governance practices at Satyam - considering a share buyback 3,World Bank suspended Satyam for eight years from doing any business with itself (offering brides to obtain lucrative contracts) 4,an independent director resigned (not opposing to the acquisition) 5, Infrastucture Leasing and Financial Services Trust sold 4.41 million shares which results in the decrease in the raju and his family stake in Satyam 6, market capitalization eroded by 40 % 7,former senior executive in Satyam sent out an anonymous email to board members and then forward ( include details about financial irregularities and fraud at Satyam. What do you think were the reasons for the fraud? Could this fraud have been prevented? 1, Low profit margin (3%) and increasing competitionoverstate profits to maintain the share price level which can make sure Satyam was not subjected to a hostile takeover. 2, raju could first think that a minor adjustment could be in the general interest of everyone concerned (cover up bad performance and become unmanagemeable with company expands) 3,Experts refuse to believe that the operating profit of Satyam could be as low as 3%. This leads to speculation that some of the money could have been siphoned off. 2. Critically evaluate the corporate governance mechanisms adopted at Satyam. Did they help to prevent fraud? First - internal audit (team headed by CFO ( financial gap in actual and stated profits was known to senior officials including the chief operating officer and the CFO Second- external audit (Pwc) - higher audit fee twice as peers exists bride to hide accounting irregulations( improper verification of cash and bank balances) Third the board has the audit committee headed by an independent board member 3. What lessons are learned from the Satyam case? 1. Investigate All Inaccuracies The fraud scheme at Satyam started small. Sound familiar? A lot of fraud schemes start out small, with the perpetrator thinking that small changes here and there won't make a big difference - and are less likely to be detected. This sends a message to a lot of companies: if your accounts aren't balancing or if something seems inaccurate, even just a tiny bit, it's worth investigating. Break down tasks so that there are checks in each area. Dividing responsibilities across a team of people makes it easier to detect irregularities or misappropriated funds. 2. Ruined Reputations Fraud doesn't just look bad on a company, it looks bad on the whole industry. According to a Reuters article, Accounting Scandal at Satyam Could be India's Enron : "India's biggest corporate scandal in memory threatens future foreign investment flows into Asia's third-largest economy and casts a cloud over growth in its once-booming outsourcing sector. The news sent Indian equity markets into a tailspin, with Bombay's main benchmark index tumbling 7.3% and the Indian rupee fell." The Satyam scandal subjected even the company's Indian rivals to greater scrutiny by regulators, investors and the public. 3. Corporate Governance Needs to be Stronger The Satyam case is just another example supporting the need for stronger corporate governance. Companies mustbe carefulwhen selecting executives and top level managers. These are the people who set the tone for the company - if there's corruption at the top, it's bound to trickle down. Separate the role of CEO and Chairman of the Board. When the same person takes on both roles, who's left to check up on the CEO? Splitting up the roles helps avoid situations like the one at Satyam. Auditing firms, likePricewaterhouse Coopersalso need to be brought under the regulatory umbrella. Without monitoring, it will be difficult to tell if the auditor and the company are working together to tamper with the accounts.

A Funny Selection of Philosophy Jokes

A Funny Selection of Philosophy Jokes There are plenty of hilarious philosophy jokes out there, some of which could easily be incorporated into teaching materials for both children and adults. From three books on the topic by Tom Cathcart and Dan Klein to the back pages of the internet, philosophy has borne the brunt of many a joke through the ages, offering both truth and humor to a rather grim observation of the human condition. The history of philosophy  is, in fact, riddled with humor. Cathcart and Klein Since 2007, the dynamic philosophy comedic duo of Tom Cathcart and Dan Klein have used humor to observe some basic truths around human psychology and ancient and modern philosophies. They famously taught the work you may even begin to understand philosophy through jokes, penning three books on the topic. Largely their structures hinged on telling a joke then explaining its relevance to the broader science. Their first book, Plato and Platypus Walk Into A Bar: Understanding Philosophy Through Jokes premiered in 2007 and was a major commercial hit, breaking down jokes according to philosophical branches or broad topics such as relativity. In it, it picks apart such jokes as what is the sound of one hand clapping, as they compare to Platos observations on topics like religion, logic, and reasoning. Aristotle and an Aardvark Go To Washington was their second book, published in 2008 and utilized politicians most awkward talk to take up philosophical issues. Their third book Heidegger and a Hippo Walk Through Those Pearly Gates: Using Philosophy (and Jokes!) to Explore Life, Death, the Afterlife, and Everything in Between (2009) is devoted to a single philosophical topic: immortality. Some of Historys Greatest Jokes Some notable and unsourceable jokes date all the way back to Platos time, in fact, The First Law of Philosophy is that for every philosopher, there exists an equal and opposite philosopher and the Second Law of Philosophy states that theyre both wrong. A common joke overheard  in 18th-century England was told as Did you hear that George Berkeley died? His girlfriend stopped seeing him! And more recently, you may have seen this gem plastered on bathroom stalls: God is dead - Nietzsche; Nietzsche is dead: God. Nothing is safe in the realm of philosophy jokes, especially not religion. Have you heard this one? What did the Buddhist say to the hot-dog vendor? Make me one with everything; What did the vendor then say to the Buddhist when he asked for change? Change comes from within! Ethics also hasnt avoided ridicule, as is the case with this famous joke. In it, a thoroughly secular young attorney and a philosopher were engaged in a fierce theological debate. Heaven and hell, you will agree, may very well be separated by a wall, contended the lawyer. Should it happen that this wall would fall down, who would you say must rebuild it? He posits that the righteous would insist that the wicked do it and the latter would likely refuse. He continues, If this case came before a judge, which do you believe would emerge the winner? The philosopher replied, It seems to me that any fair-minded judge would render a verdict against the wicked since the likelihood is that the wall should crumble from the fires of hell rather than from the bliss of Paradise, but on the other hand, I fully realize that hell surely contains a full quota of glib-tongued lawyers, and I should therefore not be surprised if they won the case.